FX.co ★ Aussie Dollar Down for 3rd Session

The Australian dollar dipped below $0.653 on Monday, marking its third consecutive session of decline, influenced by increasing anticipation of an interest rate cut by the Reserve Bank of Australia (RBA) and renewed tariff worries. There is a 99.7% likelihood that the RBA will enact a 25 basis points reduction on Tuesday, marking the third rate cut this year, which will reduce the official cash rate to 3.6%. This move responds to diminished inflation risks and a decelerating domestic economy. Investors remain watchful ahead of the Federal Reserve's meeting minutes this week, seeking insights into the central bank's policy trajectory. In terms of trade, President Trump confirmed that new tariffs will be implemented on August 1, though final rates are still under negotiation. Treasury Secretary Bessent stated that nations without trade agreements by then would see tariffs revert to the levels set on April 2. However, analysts believe the Australian dollar will remain stable due to its reliance on the gradually recovering Chinese economy.